This proposal is created by the Core Voltage Team regarding the tokens collected via the Fuse Ecosystem Round that took place on March 8th, 2022. The event was an amazing success seeing that we collected 2,784,226 $FUSE tokens which = ~$1.06 Million USD. Below are the 3 options we propose for what to do with the collected $FUSE tokens:
Strategy 1:
50% of the $FUSE tokens collected will be burned (~$530K )
25% of the $FUSE tokens collected will be added to liquidity pools selected by the team
25% of the $FUSE tokens collected will be locked and used as a grants program to support innovative projects looking to partner with Voltage.
This will make sure all collected $FUSE tokens are accounted for and are put to use in the best possible manner. A burn would benefit the FUSE community at large and we plan to do this at random times until the entire 50% collected has been burned. This alleviates sell pressure as the FUSE token will more than likely rise.
Disclaimer: This is not financial advice. Please do your own research when investing.
We feel that we have detailed information about which pools have performed the best and which ones will contribute greatly to the sustainability of Voltageās farming reward emissions. If this vote is passed, the 25% allocated will be divided up amongst multiple liquidity pools. Our priority is to make sure the $FUSE-$VOLT pool has adequate liquidity. We will add to the remaining pools in an order of importance based on volume, and TVL.
A detailed explainer of our grant program will be provided post acceptance of this proposal.
Strategy 2:
10% of the $FUSE tokens collected will go to an incentivized single-staking pool (stake xVolt for Fuse rewards)
40% of the $FUSE tokens collected will be burned
50% of the $FUSE tokens collected will be added to liquidity pools selected by the team
Strategy 3:
50% of the $FUSE tokens collected will be burned
50% of the $FUSE tokens collected will be added to liquidity pools selected by the team
A poll has been created in order to give the community the possibility to vote on which of these strategies will be added on Snapshot
in Strategy 2 it says this: ā10% of the $FUSE tokens collected will go to an incentivized single-staking pool (stake xVolt for Fuse rewards)ā
will this 10% be added all at once? and when the rewards are exhausted, it is over? or will the 10% be added gradually? Being refunded similar to the farms on voltage?
if this is the case, could the non-supplied amount be staked on a validator, to earn rewards, that will continually fund the stake pool?
If it is all added at once to the single stake pool, what would be the emission rates, how long would this last? when all rewards are exhausted, is the any kind of mechanism that will refund this pool?
I am personally leaning towards Strategy 2, but would like to understand a bit better before i vote.
This hasnāt been disclosed, but we can discuss it.
At the current state, itās a temporary event, with a possibility to extend (based on succesfulness of it).
Funding the xVolt staking pool with validator rewards is actually a genius idea!
You opened up a nice box of questions there, and i will definitely discuss these details with the team.
The current stance on the āstake xVolt-earn other assetā model is one we are aiming to implement more in the future, with other assets, not just Fuse, as rewards.
If the staking pool proves to be a hit, weāll definitely find a long-term solution on how to fund that pool, and every other with the same mechanics.
this strategy i like, even distribution across all ideas. thanks Helen (@wyuiop), we have been discussing this in FSB TG a bit, and it was suggested another strategy be added, and i canāt agree more, burning builds hype, but that tends to be short lived, staking rewards, drawls ppl in, Grant Programs bring developers, and Liquidity is something every network needs more of, no matter the current size.
As far as I think 0% burn is the best idea, save it as a reward for liquidators and Volt holders.
Currently at this time burning is not reasonable, this time needs new people to enter, it is better to save it as a reward to attract new people, when the fuse increases in price, the burn will have value.
I voted strat 1. We need people to bridge over to the ecosystem, which benefits everyone ā¦they will do that if there are interesting projects built by good devs. Attracting good devs/projects requires some incentives/grants.
I agree with not burning and instead use the assets productively (and carefully to lessen any sell pressure).
I really like the idea of a perpetual fund (for the entire amount), to whatever extent possible. Validator staking seems like a great idea, if the fuse team is Ok with that (since it reduces to some extent the rewards for other fuse stakersānot sure how significant this would be, obviously less the more the network grows). (A contract could regularly distribute rewards to the designated areas.)
Definitely like funds going toward all three: liquidity, voltage ecosystem development (voltage team/expansion?, projects that augment/enhance voltage), and user incentives (staking, liquidity).
Option 4:
0% burn
50% LP
40%Grant program
8% staking reward
2% Bug Bounty Program
There is 0 point of using 530k in burning at this moment, instead of its we can use it to attract more devs coming to build more protocols (Defi, NFT, Gamefi) aka running Hackathon. Beside, Iām raising a point of a portion of Bug Bounty program for Voltage dex should be take in place from the funds has been raised.
Hello all,
Good to have everyone here, starting the discussion!
Giving my points:
I agree with the burning 40%-50 of Fuse tokens.
I donāt think we should discuss the grant program, as itās too early for this now.
I donāt think we should prioritize xVolt staking over LP staking. LP providers are more important and should get better a yield. xVolt is good for keeping a VOLT price, but it doesnāt add to the overall liquidity.
How are we gonna get the matching tokens for the liquidity? the DAO have about 100M of Volts. the rest is vested.
25% currently is about 675K Fuse. Itās about 300K$. The liquidity on voltage is 3.5M$ now. So itās about 10% of current liquidity.
The liquidity on fusefi is still 5M$. Seems like first thing we should to discuss now is how to move the LPās to Voltage.
Summing up:
Iām in favor of burning 35%-50% of Fuse.
For now, Iām against the Grant programs
Would love to discuss a plan how to migrate liquidity to Voltage from Fusefi. We need more farms, but donāt need all of the fusefi farms.
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